Description

NSE announces addition of 3 securities to ESM Stage-I and movement of securities between ESM stages effective September 2025.

Summary

NSE has updated the Enhanced Surveillance Measure (ESM) framework, adding three securities to Stage-I and moving several securities between different ESM stages. The changes include shifting securities from rolling settlement to trade-for-trade segment and implementing 100% margin requirements.

Key Points

  • 3 new securities added to ESM Stage-I: Gujarat Apollo Industries, Ideal Technoplast Industries, and Lotus Eye Hospital
  • Securities in ESM Stage-I will attract minimum 100% margin on all positions
  • Affected securities will move from Rolling Settlement (EQ/SM) to Trade-for-Trade (BE/ST) segment
  • Securities moving to Stage-II will be under Trade-for-Trade with 2% price band under Periodic Call Auction
  • ESM framework works in conjunction with other surveillance measures

Regulatory Changes

  • Securities under ESM Stage-I will shift from Rolling Settlement segment (Series: EQ/SM) to Trade-for-Trade segment (Series: BE/ST)
  • Securities moving to Stage-II will have 2% price band restriction under Periodic Call Auction
  • Price bands will be reinstated to original levels when securities move out of the framework

Compliance Requirements

  • Members must apply minimum 100% margin on all open and new positions for ESM Stage-I securities
  • Market participants must comply with trade-for-trade settlement requirements
  • All existing surveillance measures remain applicable alongside ESM

Important Dates

  • September 1, 2025: Securities moving to Stage-II come under Trade-for-Trade with 2% price band under Periodic Call Auction
  • September 2, 2025: ESM Stage-I securities attract 100% margin requirement and shift to Trade-for-Trade segment

Impact Assessment

High Impact Securities (New ESM Stage-I):

  • Gujarat Apollo Industries Limited (GUJAPOLLO)
  • Ideal Technoplast Industries Limited (IDEALTECHO)
  • Lotus Eye Hospital and Institute Limited (LOTUSEYE)

Medium Impact Securities (Stage Movement):

  • BIL VYAPAR LIMITED (BILVYAPAR) - Stage-II to Stage-I
  • Chamunda Electrical Limited (CHAMUNDA) - Stage-II to Stage-I
  • Giriraj Civil Developers Limited (GIRIRAJ) - Stage-II to Stage-I

The measures will increase trading costs and reduce liquidity for affected securities, while providing enhanced market surveillance and risk management.

Impact Justification

Affects trading parameters and margin requirements for specific securities under surveillance framework